Estate of Philip Meriano, Deceased, Anita Panepinto, Administratrix - Page 21

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                    We are of the opinion that under all of the facts                 
               and circumstances of this case a fair and reasonable                   
               fee would be a total of 35% of the market value of the                 
               bonds recovered, with Lynch to be responsible for the                  
               payment of Reardon's fee of 15% of the market value of                 
               the bonds recovered.  As a result, Lynch must refund to                
               the estate the full amount of the compensation allowed                 
               by the Court to Reardon.  That is, Lynch must refund                   
               the amount of $171,966.90 to the estate.  In addition,                 
               because Lynch paid Reardon's fee from estate assets                    
               without any authority and because of our finding that                  
               the amount of compensation taken by Lynch and Reardon                  
               and allowed by the auditing judge is unreasonable and                  
               excessive, Lynch must pay interest on the $171,966.90                  
               refund at the rate of six percent from the date of                     
               payment to Reardon until the date of the refund.  Lynch                
               made the payment at his peril and deprived the estate                  
               of the opportunity to earn interest on the money.  It                  
               is only fair that he now make the estate whole for the                 
               estate's loss.                                                         
                    The $171,966.90 refund is, of course, in addition                 
               to the refund of $23,559.09 which he must make on                      
               account of the overpayment of his own fee.                             
                    Concerning the interest to be paid on the                         
               surcharges imposed by the auditing judge on Lynch and                  
               Reardon, it is apparent that the auditing judge imposed                
               interest on the full amount of the money he found that                 
               Lynch received without subtracting from that amount the                
               amount of the compensation he found to be reasonable.                  
               It was clearly error for the auditing judge to find                    
               Lynch liable for the payment of interest on the full                   
               amount of the money he found Lynch to have received.                   
               Lynch's obligation for interest runs only on the                       
               difference between the amount of money he took as his                  
               fee and the amount of his fee which the auditing judge                 
               found to be reasonable.  That is, he need only pay                     
               interest on the sum of $23,559.09 at the rate of six                   
               percent from the time of receipt until the time of                     
               refund.                                                                
               Following the issuance of the Orphans' Court's opinion and             
          order on August 1, 1989, all parties appealed Judge Pawelec's               
          order to the Superior Court, which affirmed the order on June 13,           
          1990.                                                                       




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